The Research On Banks' Excess Liquidity

China has become a huge dragon which is standing in the eastern of the world after 30 years'reform and opening up. However, with the economy's fast growing, we also encounter a series of new problems. In recent years, many assets'prices grow fast which results in economical bubbles in a certain extent. A new phenomena comes up which is named"excess liquidity". In the surrounding of excess liquidity, commercial banks are influenced mostly. Finance is the key sector of the economy while the banks are the key sector of finance. Hence the commercial banks'managements are always the focus of governments and scholars. Among the three basic required principles, liquidity is more important than security and earning. Guaranteeing the liquidity is not only the precondition of avoiding risks by the commercial banks but also the assurance of stabled managements. Big banks outside china pay attention to the liquidity, moreover, they have also found a useful way of liquidity managements and perfected it.However, Chinese commercial banks especially the four state banks have been affected by system for a long time, the management of liquidity is very weak. Thanks to the assurance of governments'reputation, they needn't take the risk of liquidity which makes they don't give the managements of liquidity enough attention. Although excess liquidity can make the banks avoiding the risk of liquidity, it brings more negative effects. Firstly, it increases the cost of managements and weakens the ability of payoff. Secondly, it catalyzes the bubble of stock markets and real estates and blocks the health and continuing development of Chinese economy. Consequently, resolving the problem of excess liquidity has become not only avoiding risks of management but also maintaining the fast and health development.Regarding this problem, the academia has discussed it for a long time, but they failed to make an agreement, furthermore, they couldn't give a consistent definition. This dissertation aims to research on the excess liquidity of commercial banks based on other information and achievements.Firstly, the dissertation gives the definition of liquidity and excess liquidity according to the native and foreign scholars'researches. Secondly, the dissertation explains that in the surrounding of excess liquidity the commercial banks are affected and impacted mostly. Thirdly, the dissertation emphasizes on the reason, impacting and countermeasure of excess liquidity. Finally, the dissertation gives some advices on how to resolve the problems about excess liquidity.